The New South Wales Government should follow the lead of the Australian Capital Territory, which has reduced its tax rates for transfer stamp duty and brought in incentives for over the 60s, according to the Real Estate Institute of New South Wales.
On Tuesday, 3 June 2014, ACT Treasurer Andrew Barr announced as part of the 2014-15 Budget, reduction in transfer duty rates, effective 4 June 2014.
“We applaud this decision from the ACT and believe that NSW should follow its lead. Stamp duty rates in NSW have not been reviewed for more than 40 years, which means that the average home is being taxed well beyond what Parliament initially intended,” REINSW President Malcolm Gunning said.
“Although the ACT still imposes higher rates of transfer stamp duty than NSW, on residential properties valued between $800,000 and $3 million, average homes are below $800,000 which means the lower rates in the ACT are fairer than in NSW.*
“Furthermore Mr Barr also announced the thresholds for the Pensioner Duty Concession Scheme** have increased and the introduction of an over 60s Home Bonus Scheme*** designed to assist eligible non-pensioners to move to accommodation more suited to their needs (e.g. from a house to a townhouse) by reducing the conveyance duty payable.
From 4 June 2014, the Home Bonus Scheme is available to eligible applicants aged 60 years and over where the purchased property is below the determined upper threshold.***
All other eligibility criteria align with that of the Pensioner Duty Concession, including residency and ownership tests and the schemes are not limited to ‘new’ residences.
“These incentives for older Australians will help with the current shortage of accommodation and housing affordability,” Mr Gunning said.
“It is a win-win for everyone, providing support to all levels of the market including first homebuyers. We encourage Premier Mike Baird to apply these incentives in NSW in the upcoming Budget.”
For further information or to arrange an interview with REINSW President Malcolm Gunning, please contact:Helen Hull – 0419 642 961 or [email protected]
*http://www.revenue.act.gov.au/duties-and-taxes/duties/land-and-improvements
**http://www.revenue.act.gov.au/home-buyer-assistance/pensioner-duty-concession/4-June-2014-31-December-2014
***http://www.revenue.act.gov.au/home-buyer-assistance/Over-60s-Home-Bonus-Scheme